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Will Chinese electric-vehicle start-ups usher a highlight time ?
Just one night after Li Auto's IPO in the U.S., rumors are spreading that Xpeng will make US IPO filing public in August. According to Reuters' media IFR, the size of the IPO will be at least $700 million. If it is successful, then the company will become the third biggest Chinese electric-vehicle start-up to go public in the U.S. after NIO, Li Auto. Just on July 20, Xpeng announced that it has secured $500 million in its C+ round funding, with investors including Hillhouse and Sequoia Capital China.
So, after their IPOs, can they change the pattern of the Chinese EV market?
Xpeng raises 3.5 billion in C+ round founding
Founded in 2015, Xpeng's initial investors are primarily He Xiaopeng, co-founder of UC and former president of Alibaba's Mobile Business Group, who is now chairman and CEO of Xpeng.
Although it is only 5 years old, the company has been in financing state. Public data show that Alibaba participated in its Series A and B rounds of financing, and Xiaomi joined in its Series C round. At that time, Xpeng was valued at nearly $4 billion. And just in July 20, Xpeng announced that it had completed a C+ round of financing with the participation of well-known investment institutions such as Hillhouse and Sequoia Capital China. And the amount of financing is nearly $500 million. So far, Xpeng has experienced 10 rounds of financing, with a total of about 20.3 billion yuan of financial support.
Now, less than a week after the official announcement of the latest financing news, the market is once again rumored to be going to the U.S. IPO of Xpeng, with no official response for comment. The reason why Xpeng needs an IPO is because of lack of money. Due to the new energy automobile industry is still in a long-term loss state, the Chinese electric car start-ups have to target US IPOs. The only way to survive in this money-burning circuit is to widen access to financing. Therefore, an IPO seems to be the most logical choice for the cash-strapped Xpeng at the moment.